CESC signs coal purchase deal with Australian firm

CESC signs coal purchase deal with Australian firm

Mumbai: Power utility CESC Ltd said on Wednesday it has signed an agreement with Australia-based Resource Generation to purchase 37 million tonnes of coal over 20 years, allowing it to secure fuel supply for its power projects.

The RPG group firm will buy coal from Resource Generation’s Boikarabelo mine in South Africa, CESC said in a statement, but did not give any financial details.

CESC, with a current power generation capacity of 1,225 MW and ambition to take it to 7,000 MW by 2017, will be able to use the coal imported from South Africa for its plants.

The coal supply from the South African mine will begin from 2013 once the coal mine is fully developed, vice chairman Sanjeev Goenka told Reuters.

Indian firms including Adani Enterprises that owns Adani Power, JSW Energy, Tata Power have either bought a stake in oversees miners or entered into coal-purchase agreements, as India faces a shortfall for the fossil fuel.

At 02:35 p.m., shares in the firm were trading 0.39% down at 418 in a Mumbai market that was up 0.9%.